Pfizer

December 2, 2020

One million, divided by 365, equals 2,740… and, for the first time, that number was exceeded in the U.S. with respect to daily deaths… which simply means that at the present rate, C19 would claim more than a million American lives annually.

Fortunately, that’s not going to happen. Notwithstanding the present president’s disregard and complete lack of giving a shit with respect to doing anything to mitigate those deaths, vaccines are coming. Yeah, for all of you who want to heap praise on Trump for getting it done… how about you heap that praise on the tens of thousands of researchers whose hard work over many decades is what actually led to these vaccines. What Trump could’ve done, and hasn’t, is help keep things together before the vaccines arrive. It wouldn’t have taken much… a well-placed Tweet here or there, some sanity with respect to federal policy regarding masks and social distancing.

Whatever, the damage is done, and will be felt for decades and, for the moment, continues to rage with numbers that are scary. They’d be a hell of a lot more scary were it not for the vaccines, but even that is tempered by the brainwashed tens of millions who’ll refuse to get vaccinated, thanks to said soon-to-be-former-president’s nonsensical mixed messages.

Today, the U.K. became the first country outside of China and Russia to approve a vaccine. They’re planning the roll-out of the Pfizer vaccine as soon as next week. This is the one that needs to be kept super-cold, so there are logistical challenges to overcome. For what it’s worth, the Pfizer vaccine is one of seven that Canada has pre-ordered. Moderna and AstraZeneca, the two others with recently published excellent results, are also on that list.

When will Canada get a vaccine? That’s a good question, and the answer depends on who you ask. I’ve asked that question from many people who might have better than random guesses, and I’m feeling more optimistic than others. There’s a rumour that Trudeau screwed it all up and we’ll be waiting for months; that doesn’t seem to be the case. I know, this person said this and this person said that. I wish I could detail a bit what I’ve heard, but… for the moment… was told not to say more. And, for what it’s worth, this is friend of a friend of a friend sort of knowledge… but… it if it’s accurate, it’s promising. Stay tuned…

December 2, 2020

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November 25, 2020

At some point soon, Health Canada will announce the availability of a vaccine. Provincial Health Services across the country are already working on the logistics of providing it to you.

If you ask someone today whether they’ll be getting it, the usual answer is “Of course… but not right away… just want to make sure it’s ok.”

Well… by the time it gets to most of us, it’ll almost certainly be ok. More than ok. In fact, it will have been ok from day 1, where some of the first people to have gotten it would have been at higher risk… front-line workers, elderly people… and they will all be just fine. More than fine.

It’s not an irrational concern; vaccines, as we’ve repeatedly heard, take many years to develop. And, even then, sometimes there are problems. How can this one, super-rushed at every step, be guaranteed to be safe? How can we sacrifice so much time without sacrificing quality?

Part of the answer lies in understanding why it usually takes so long.

First of all, as usual, money. Developing a vaccine isn’t cheap, and isn’t always successful. The millions of dollars it takes aren’t always so easy to find. After the initial idea for the vaccine is thought up, it takes money to develop that thought. A grant gets applied for, and that’s usually not successful… something like the good old 80/20 rule plays out… where only 20% of these proposals actually get funded to proceed. Just getting to that point is a grueling and time-consuming process. Where animal testing will be involved, ethics boards also need to sign off.

In this case, there were no grant proposals. A ton of money was found, and quickly. Bill & Melinda Gates have thrown a staggering $420 million dollars into C19 research. Also, a million dollars that went towards the funding of the Moderna vaccine came from… Dolly Parton. From far and wide, the money rolled in… and what usually takes years (if it happens at all)… took minutes.

This allowed multiple, parallel paths of development. Top minds from every angle tackled this problem, and it was found that developing an mRNA (instead of DNA) vaccine would be the right way to approach things. This inherently saved some time because some concerns that usually need to be addressed became non-issues. You don’t need the actual virus. You don’t need to attenuate it… a tricky process of reducing the virulence of a pathogen, enough that it becomes relatively harmless, but not so much that it becomes useless. All of that takes a lot of careful experimentation… and consumes a lot of time. But in this case, all that was needed was the genome sequence of the virus. The risk is far less with respect to human safety. The bigger risk is whether it’ll work at all.

At some point in the research, a vaccine candidate makes an appearance. And normally, there begins a cycle of testing, publishing, approval and requests for further funding… and each iteration requires more people, more testing, more money, more oversight and more approvals. These cycles take time. Finding more people. Finding more money. Sitting around waiting for approvals. But in this case, there were plenty of people and there was plenty of money. Typically, the people who hold the giant stamps of approval are busy… things enter a queue… to the bottom of the pile, and they slowly sift to the top, at which time they get dealt with. This time… straight to the top.

Eventually, after tests are shown to be successful and safe in large populations (tens of thousands of people), a drug company willing to take some risk gets involved… because they start from scratch, and need to duplicate the results to their satisfaction. The production, the testing results, everything. And if they do that successfully, then they can approach the FDA (or whatever other relevant governing body) for approval… after which they can figure out how they’re going to produce and distribute all of that in a way that makes economic sense.

In this case, a lot of that took place in parallel. We will never know how many millions of doses of non-viable vaccine got thrown into the garbage, and by whom… but with so much money available and so much at stake, it was the right way to do things. If this vaccine candidate might actually be the one, make lots, and make it now… and if turns out to not be the one, oh well… some money was wasted, but the risk/reward made it worth it.

There are already millions of doses of Pfizer and Moderna vaccine in existence. As we speak, millions more are being made… on the assumption that when this all goes in front of the FDA on December 10th, things will go well… so well that it’ll only be days later when wide-spread distribution will begin. Normally, production would have begun only after FDA approval.

Indeed, the right question that was asked months ago was a simple one… “How do we get a vaccine out to the world as quickly as possible?” – and the answer was to cut corners that wouldn’t affect the safety or effectiveness of the end result. And that’s what we’ve gotten.

When you’re so used to something taking that long, it’s natural to view it with suspicion… but here’s a simpler example. Let’s talk about NFL football for a minute… a typical NFL game takes a little over three hours to play. The game clock, though… it’s only an hour… 4 quarters of 15 minutes each. But here’s the thing… inside that one timed hour, the actual time the ball spends moving is… eleven minutes. But… there’s the time between plays, where the clock keeps moving… but the ball is sitting at the line of scrimmage, waiting. There are official replays. There are challenge flags. There are timeouts. There are clock stoppages. There are two-minute warnings. There are commercial breaks. There’s halftime. If you were to compress a typical NFL game by removing all of that, you could watch the entire thing in less than 15 minutes. Do you miss anything of value by doing so, if all you’re really interested in seeing is actual football being played?

Similarly, as it turns out, once you remove the bureaucratic delays from the vaccine-development timeline, all you’re left with is the science, and the procedures that drive it. And an end-product that’s as trustable as one that would otherwise have taken years.

After reading all that, you still might be thinking, “Yeah, but still…” and that’s ok. At some point, it’ll reach your comfort level… but for what it’s worth, if nobody wants to go first – sign me up. Having a clear understanding of how this all came about, I would have zero hesitation. If volunteers are needed for the front of the line, I’m there.

November 23, 2020

One might be a fluke, but two implies some consistency… and three pretty-much says, “lock” – and that is where we’re at with respect to vaccines.

Another announcement this morning from yet another vaccine manufacturer, this one from AstraZeneca, showing an average efficacy of 70%, but going up to 90%, depending on the dosage. Regulators from the FDA and Europe will be having a look at it soon.

From a timeline point of view, the two frontrunners, Pfizer and Moderna… may have their vaccines hitting the streets in the last two weeks of December, assuming the present timeline and FDA approval (set to be discussed Dec. 10th). Pfizer expects to make 50 million doses by the end of the year (and up to 1.3 billion next year). Moderna will have 20 million doses ready this year. Who will get it first? Mostly Americans, I would expect… and, honestly, they need it.

That great American Founding Father Patrick Henry proclaimed, “Give me Liberty or give me Death!” back in 1775. Americans, known for wanting it all, are taking those words to heart… potentially changing the “or” to an “and”.

Over the weekend, over 3 million people passed through security checkpoints in American airports. Something like one in 111 Americans travelled on a plane in the last 48 hours, the majority on their way home for Thanksgiving, where they will mingle in close quarters for several hours if not days… before boarding those same planes and heading back to wherever.

The timing with “vaccines vs. the virus” will be interesting… and will be the grand crescendo of 2020. In fact, let’s call it for a specific day – Dec 20th, 2020, precisely one month before Donald Trump exits, stage left. On that day, many places in the U.S. will be facing a catastrophic and unmanageable surge in cases, with hospitals completely overwhelmed. And right alongside that, there will be the knowledge that the vaccine is out there, and “How the hell do I get my hands on it?!”

The amusing-if-it-weren’t-so-tragic part of it will be the conspiracy spin… from those people who for the better part of a year have been claiming it’s a hoax and it’s all bullshit… who will now be screaming that only the elite have access to it and how come we don’t all get it, like, *now*, and it’s my right to have a vaccine… my *constitutional* right as part of the Declaration of Independence: Life, Liberty, and the pursuit of Happiness. Clearly a vaccine fits into that. Like, you know, I don’t want a vaccine, I don’t need a vaccine, vaccines are for crowd control, vaccines are to murder us, Bill Gates, 5G, etc, etc… *BUT*, even so, if I want a vaccine, I should be able to get one. OK.

Keep your seatbelts securely fastened… the roller-coaster has just begun that big downhill. This is the part where you can put your hands up in the air and scream… or just hold on for dear life. Like I keep saying, there’s a finish line… but it’s going to be a wild ride getting there.

Graph for November 23, 2020

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November 14, 2020

The U.S. Securities and Exchange Commission is tasked with keeping stock markets fair, clear, transparent and free of fraud. That’s their mandate, and they’re pretty good at doing so, especially these days when super-intelligent super-computers can keep tabs of everything that’s going on every millisecond, and can instantly flag irregularities. Getting away with it, whatever “it” is, is tougher these days.

The most straightforward type of stock fraud is when someone acts on insider information, and the most common version of that is someone inside a public company who’s privy to knowledge that the public doesn’t yet know. It can certainly be the CEO, the CFO, the CIO, the COO… whatever C-letter-O executive you can think of often has knowledge of the sort, but it’s usually not those people who try to pull a fast one. Those guys know they’re being watched, and they’re all already well-compensated. Any shenanigans that would be materially relevant to them would almost-certainly get caught.

No… usually, it’s an intern who runs across something left in the recycle bin next to the copier… who then calls her BFF and asks what she should do with this info, and the BFF texts her boyfriend who knows a bit about the markets. And that guy logs into his Ameritrade account, buys a few call options, and gets totally busted when the SEC flags his trades because it’s so ridiculously blatant.

But, back to the C-people… many of them are partially paid/bonused in shares, and what they do with their shares is scrutinized inside out. Which is why when they intend to buy or sell shares, they need to make it very clear and very well-known, usually in advance. And those filings are all available to the public.

Accordingly, on August 19th of this year, Pfizer CEO Albert Bourla filed his intent to sell 132,508 shares of his company, should the share price hit a certain number. On November 9th, Pfizer announced that most excellent news, the one about the 90%-effective vaccine… and the spike in share price hit that number… and the order to sell was executed.

That part of it is simple, and that would be it… except there’s perhaps a troubling little footnote… which is what Bourla may or may not have known back in August. Indeed, the day after he renewed that order to sell, the company issued a press release confirming they were on track to deliver a vaccine candidate in October. But… the sell order had been in place from years earlier, and that was simply the timing of the renewal. And, the announcement didn’t have much of a relevant impact.

None of that will stop people from thinking something’s wrong here… and watchdog groups will call upon the SEC to investigate. The SEC may or may not dig into it any further, though what you’ve read above is pretty-much all there is to it. But… everyone agrees, even the SEC, that it doesn’t look good. Wearing white after Labour Day doesn’t look good either, but it shouldn’t send you to prison. It’s not illegal; just generally bad judgment… the same sort of bad judgement that may have been displayed by Albert Bourla in not pulling the plug on the transaction.

Bourla, who’s been with Pfizer more than 25 years, made over $18 million last year in salary, bonuses and stock allocation. While a lot of noise is being made about the $5.6M he pocketed in this transaction, it’s certainly not $5.6M out of thin air. He’s been earning those shares for a while. Those shares were around $36 before, $40 during the frenzy, now $38. This story is perhaps more hoopla than it deserves. 130,000 shares plus or minus $2 a share equals a quarter million dollars… for a guy who makes more than $18M a year.

On that note too – “buy on rumour, sell on news” – investors who’ve been following all of the these pharmaceutical and biotech companies… the thing is this: share prices move on unexpected news or rumour… and if news comes out that’s unexpected, good or bad, it’ll have a positive or negative effect. Expected news doesn’t move the needle, because that knowledge is already built into the price. We all know Pfizer is working on a vaccine, we all know they’re trying to get it done ASAP.

The unexpected news in this case was simply the “90%”, and all of the day traders who jumped on it and bought bought bought… might regret it, unless they’re going to hold on to it for a while… because shortly after, the price slid down again.

The reason is simple… materially, that 90% doesn’t change much. Pfizer is committed to making as much vaccine as they can, for any definable future period of time. The 90% won’t let them make it faster, nor will they be able to charge more because it’s “better”. The purchase contracts for the vaccine are already in place, and even if they weren’t, this wouldn’t affect it. It’s business as usual.

One thing though about the timing of the announcement… it came (very) shortly after the election. Pfizer knew that Trump would jump all over it and take credit for it and make all sorts of bullshit claims about how it’s all due thanks to him. As expected, all of that happened… but after, of course. Was that on purpose? Pfizer claims they’re simply going by the science and reporting things when and where it makes sense to do so. Perhaps that’s true. Or perhaps they knew, and they waited.

It’d be a pretty suitable FU to Trump, to be honest. Would it have altered the course of the election? Doubtful. Who knows. And, really, who cares. There are far more important things to worry about.

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November 9, 2020

Tonight… November 9th, marks the 82nd anniversary of an event known as “Kristallnacht”. If you don’t know what that is, here’s a brief summary:

On the evening of November 9th, 1938, the mobs took to the streets in Nazi Germany. Jews were assaulted, beaten, and dragged from their homes… which were then ransacked. Over 7,000 Jewish businesses were looted and destroyed. Hundreds of Jews lost their lives, many by suicide. Over 30,000 Jewish men were arrested and incarcerated in concentration camps.

The word “Kristallnacht” literally means “Crystal Night”, named for the piles of broken glass left behind. Indeed, if you were to try to find a “kick-off’ event for the Holocaust that ultimately claimed the lives of 6,000,000 Jews, this was probably it.

The German police stood around and did nothing to stop it. German citizens not participating stood around, many of them horrified at what they were seeing… but also did nothing.

Historians have been writing about, discussing and analyzing this event (and what led up to it, and what came from it) for decades. And every year, it is commemorated… with events where those who were there talk about their experiences, what they witnessed, how it affected their lives. Every year there are fewer of them… but it is important to remember it, to never forget. Those events are happening tonight, like they do every year… except, this time, via Zoom.

I was at one of these events four years ago, and it was more sombering than usual. Donald Trump had been elected the previous evening, and for many people, it was hitting a little too close to home. Nobody knew what lay ahead. Those historians were nervous; they’d seen this before.

Four years later, here we are… and I can assure you, the tone of this piece would be far different had we seen a different election result. I am not saying another four years of Trump would have led to something like that, but if something like that were being led to, we were in the midst of what it would’ve looked like. I’m sure we can all agree that if Hitler had been “un-elected” four years into his term, Kristallnacht, and everything that came after it, almost certainly wouldn’t have happened.

As ridiculous as they looked, dancing in the streets of Charlottesville with their Tiki Torches purchased at the local Walmart, the brown-shirts-to-be are no joke. That’s the “stand down and stand by” crowd, ready to follow their leader. That “leader” is on his way out, and he’ll eventually leave… flailing, kicking and screaming, firing people indiscriminately… like his Secretary of Defense today. Who knows what else he’ll try to pull in the next 72 days, but 72 is a lot less than 1,533.

I feel very relieved to not have to keep writing these “what if” pieces, because they’re tough to write and fill me with dread. Or, at least, used to. It’s like in one fell swoop, problem gone. And maybe you vehemently disagree that things could ever have gotten so bad. Perhaps you’re right. But now, all the conversations become hypothetical, and that’s a truly wonderful thing. And, to be clear, the underlying problem isn’t gone… there’s plenty of healing and plenty of fixing that needs to happen… but all of that starts from the top, with a true leader.

November 9th. November 11th. These are times to look back and remember, and an important part of remembering is learning; learning from what went wrong… learning so that it doesn’t happen again.

And they’re also times to look forward. It’s a time for optimism, and certainly that’s helped by today’s announcement from Pfizer, and their continuing study whose preliminary results show a vaccine that’s up to 90% effective at preventing C19. Maybe this is the one. Maybe this is close to the one. Either way, it implies it’s a solvable problem and we’re far along the path. It’s an appropriately-timed light-at-the-end-of-the-tunnel announcement.

People have been telling each other this for a long time, and I’ve said it here many times… but it bears repeating, especially today: “It’s going to be OK.”

COVID-10 Daily Report Graph for November 9, 2020

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